Nemaska Lithium in Discussions with Partner Tianqi Lithium on Marketing Lithium Hydroxide
QUEBEC, QUEBEC, CANADA--(Marketwire - Nov. 1, 2012) - Nemaska Lithium Inc. ("Nemaska" or the "Corporation") (TSX VENTURE:NMX)(OTCQX:NMKEF) announced today that it has entered into discussions with Sichuan Tianqi Lithium Industries Inc. ("Tianqi Lithium") (Shenzhen: 002466) on strategies to jointly market and pursue off-take agreements with global end users of lithium hydroxide and lithium carbonate.
"We are delighted to be advancing our relationship with our strategic partner, Tianqi Lithium, and we are eager to formalize a marketing arrangement with such experienced producer of battery grade lithium products," commented Guy Bourassa, President and CEO of Nemaska Lithium. "Tianqi Lithium is the largest supplier of battery grade lithium compounds to the Asian market. Both companies share a common vision of an expanding lithium market, especially in the lithium hydroxide sector, where new battery cathode technologies using lithium hydroxide are emerging as the cathodes of choice for lithium powered batteries. Nemaska is well positioned in this market with planned full scale production to come on stream in 2014. I look forward to updating our shareholders as we progress these strategic discussions with our partner, Tianqi Lithium."
The key advantages of using lithium hydroxide in battery cathodes over other chemical compounds include better power density, life cycle and safety qualities. Battery grade lithium hydroxide demand is forecasted to grow by 30% per year between 2012 and 2020 driven by the electric vehicle industry, energy storage and increase in total demand from all applications.
Nemaska Lithium has already produced and sent battery-grade lithium hydroxide and carbonate samples to potential customers for evaluation. Both were produced using Nemaska's proprietary electrolysis method. A patent application for this hydroxide production process was filed on April 23, 2012. Nemaska recently signed an off-take and collaboration agreement with Phostech Lithium Inc. for up to 500 tonnes per year of lithium hydroxide monohydrate from its Phase I plant.
About Tianqi Lithium
Sichuan Tianqi Lithium Industries Inc. (Shenzhen: 002466) is the subsidiary of Chengdu Tianqi Industry Group Co., Ltd. who holds 19.9% common shares of Nemaska. Tianqi Lithium is the world largest lithium chemical producer that converts from hard rock lithium concentrates. With its devotion of more than ten years to the research, production and sales of lithium compounds and chemicals, the company now offers a diverse product portfolio ranging from carbonate to lithium metal meeting almost all kinds of raw material demand of battery producers.
Tianqi Lithium holds a significant market share and is one of the most important raw material providers for the new energy industry in China. Through its international sales network the company is also on its way to respond to the increasing demand around the globe.
Nemaska Lithium is a lithium exploration and development company with its Whabouchi and Sirmac deposits located in the James Bay Region in the Province of Quebec. Both projects are easily accessible year round by the Route du Nord from Chibougamau. The Whabouchi lithium deposit is located near the Cree community of Nemaska and the Nemiscau airport. Nemaska plans to become a lithium hydroxide/carbonate producer based in Quebec and has filed patent applications for its proprietary method to produce lithium hydroxide and lithium carbonate. The Corporation's lithium hydroxide/carbonate processing plant will be located in Valleyfield, Quebec.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nemaska to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
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